Bovis boss is ousted after warning of a profit shock sparking fears housing market is running out of steam

The long-serving boss of one of Britain's biggest builders has been ousted following a shock Christmas profits warning.

David Ritchie, who joined Bovis Homes in 1998 and took over as chief executive in 2008, stepped down in a move that took the industry by surprise.

The abrupt departure of the 47-year-old came less than two weeks after the company warned that annual profits would be lower than previously expected because it failed to complete the sale of 180 new homes before the end of the year.

Stepping down: David Ritchie joined Bovis Homes in 1998 and took over as chief executive in 2008

The update sparked fears that the housing market was running out of steam. But just days later rival builder Persimmon reported a stonking end to the year – suggesting the problems at Bovis were not being mirrored elsewhere in the industry.

Investors are also understood to have become frustrated with the performance of Bovis shares in recent months under Ritchie.

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Shares across the sector dived around 40 per cent in the aftermath of the Brexit vote amid fears the economy and the housing market were heading for a fall.

But while rivals Barratt Developments, Bellway and Persimmon have seen shares rise more than 50 per cent since their post-referendum lows – and Redrow more than 60 per cent – Bovis shares are up around 30 per cent.

'Bovis has tended to be the laggard in terms of valuations,' said one City source. 'While the company has done well investors are frustrated that the shares have underperformed the sector.'

Doubts over Ritchie's position are understood to have come to a head at a monthly board meeting in the past few days.

Ritchie, who was paid £1.5million in 2015 as his £550,000 basic salary was topped up with bonuses, perks and other awards, offered his resignation to chairman Ian Tyler over the weekend.

He will stay on at the company until the end of February to help hand the business over to interim chief executive and current finance director Earl Sibley.

Father-of-two Ritchie, who does not have another job to go to, said: 'I believe now is the right time for someone new to lead the group into its next phase of development.'